E-sports teams are financed to a large extent by sponsorship. Gaming providers are only too happy to enter into such deals due to the rather lucrative circumstances for their purposes. However, game developers and event organizers are often critical of such partnerships. After a long period of resistance, League of Legends and Valorant creator Riot Games has now allowed gambling advertising. How did this rethink come about and why is gaming actually so attractive as an advertising medium for the gaming industry?

If you want to be at the forefront of the world of e-sports, you not only need nimble fingers and a keen eye, but also one thing above all: a bulging war chest. Because maintaining teams at the top level is anything but a cheap pleasure. From now impressive player salaries and high-tech equipment to chic gaming houses - it's a case of spending big, not small. All this doesn't pay for itself - and as in traditional sport, sponsorship is the key to raising the necessary small change.

  • The huge reach of the major e-sports tournaments in particular makes such partnerships extremely attractive for companies. Sponsors include brands of all kinds - from computer hardware manufacturers and energy drinks to fashion brands such as (yes, actually) Louis Vuitton.
  • There are also companies that are not quite so welcome in the industry: Gambling providers. The market is very attractive for them and they would be prepared to invest generously. However, many organizers fear for their reputation. After all, e-sports has a huge audience, which includes younger fans in particular. Last September, we reported that no (gambling) advertising was permitted at the 2024 e-sports tournament "The International".

Among these cautious organizations was Riot Games - the giant behind the globally popular games League of Legends (LoL) and Valorant, which are celebrated in tournaments such as the League of Legends World Championship or the Valorant Champions Tour (VCT). However, a change of direction was recently announced. After months of rumors, Whalen Rozelle, Chief Operating Officer of Riot Games Esports, confirmed in a post on X (formerly Twitter) that teams in LoL and Valorant will be allowed to use gambling sponsorships from 2025.

According to Rozelle, the decision to open the doors to gambling companies was anything but easy. Strict conditions are in place to ensure that the partnerships remain within limits and do not damage the company's image. Riot also reserves the right to adjust the rules again if necessary.

What is Riot Games?

Riot Games was founded in 2006 by two college friends and is now a giant in the gaming and e-sports world. Their first game, League of Legends, was released in 2009 and has become the most played multiplayer online battle arena (MOBA) title ever. In tournaments such as the World Championship, two teams of five players each fight strategically to destroy the opponent's base. Riot landed another hit in 2020 with Valorant, a tactical shooter. The focus here is on bomb disposal and precise action. The Valorant Champions Tour quickly became a crowd puller. Riot is not only a game developer, but also shapes e-sports culture like no other with globally acclaimed events.

Gaming advertising, yes - but with strict conditions and the option to change

When Whalen Rozelle recently commented on X about the hotly debated rumors surrounding gambling partnerships at Riot Games, the message was clear: "Yes, we are opening the door - but only a crack."

His post conveyed that this is a considered and cautious decision that takes both opportunities and risks into account.

So from 2025, League of Legends Esports and Valorant Champions Tour teams in the Americas and EMEA (Europe, Middle East and Africa) will officially be allowed to partner with - importantly - Riot-approved betting operators.
Why? The move is intended to help teams expand their financial scope without compromising the integrity of the competitions or the fan experience.

The most important conditions at a glance:

  1. No gambling on Riot channels: Gambling remains a taboo on the official Riot channels. This means no betting providers or casinos on jerseys, in social media posts and during broadcasts.
  2. Strict partner screening: Riot will closely scrutinize potential betting partners. Only companies that meet high standards in terms of transparency, integrity and fan engagement will be given the green light. They must also comply with all local regulations and be verifiably licensed.

Riot emphasizes that this step is a kind of test run - with the option to backtrack if necessary. If it turns out that gambling sponsorship has a negative impact on the integrity of the competition or the quality of the fan experience, Riot reserves the right to make changes. At the same time, the concept could be expanded further if successful.

"We will learn a lot," says Rozelle, "and react accordingly."

Why gambling companies often bite the dust with e-sports organizers

Gaming providers love the million-strong reach and passionate fan community at e-sports events. However, game developers and tournament organizers often keep their distance.

But why is that? There are actually several reasons why gaming advertising is a red rag in the industry.

  1. Fear for reputation: For many organizers, the image of their brand is paramount. Gambling is still a controversial topic that does not necessarily fit in with the positive vibes that e-sports events want to convey.
  2. Legal pitfalls: Gambling laws in many major e-sports markets are very strict - if not rigorous. In China, for example, where e-sports has a massive fan base, gambling is generally prohibited. And in the USA, the legal situation varies from state to state. For event organizers, this means that anyone entering into a partnership with a betting provider or casino here is quickly treading on thin ice.
  3. Young target groups: A significant proportion of the e-sports audience is under 18 - precisely the age group that is not legally allowed to have access to gambling offers. In this respect, video games similar to gambling also repeatedly cause controversy - for example, the rogue-like Peglin with Japanese gambling machines. In September 2024, we asked ourselves whether the card hit Balatro is gambling.
  4. Ethical concerns: morality also plays a role. Gambling is not without controversy and can lead to serious problems. Organizers don't want to feel complicit when a fan takes his first steps into the gambling universe just because he saw a logo on his favorite team's jersey.
  5. Concerns about integrity: Gambling advertising could also raise doubts about the integrity of competitions. Imagine a betting company sponsoring a team and suddenly there is a questionable decision or a strange match result. The speculation would not be long in coming. In this context, it is also interesting to note that there are increasing calls for stricter laws on amateur soccer betting due to the considerable risk of manipulation.

And why are e-sports so interesting for gambling companies?

E-sports and gambling - at first glance, these two worlds may seem very different. But for online casinos and betting providers, they are an almost irresistible combination.

Why? It's simple: this is where a huge reach, dedicated target groups and lucrative market forecasts come together.

Reach that pays off

According to Statista, global turnover in the e-sports betting market is expected to be around 2.5 billion euros in 2025 - and that's just the beginning. A volume of 3.1 billion euros is expected by 2029, which corresponds to annual growth of 5.42 percent. Things are particularly hot in the USA, where a turnover of 781.4 million euros is forecast for 2025 alone. The message is clear: e-sports is a growing business - and gambling companies want a slice of the pie. Incidentally, tax revenues from sports betting have fallen in Germany - but a particularly drastic and questionable decline of a whopping 38 percent was recorded for virtual slots.

The target group fits perfectly

E-sports attracts a gaming-savvy audience - and it is precisely this target group that often shows a certain inclination towards digital gambling. Be it through in-game microtransactions with a gambling character or a love of competitive thrills - the parallels are there. This makes it easy for the relevant companies to place their messages effectively with their target groups. We reported some time ago that gambling in computer games is on the rise.

Betting and competition - a proven combination

E-sports has long since developed into a discipline that rivals traditional sports such as soccer. There are leagues, teams, stars and a community that cheers it all on. Just as with classic world sports, where gaming providers have long been established as sponsors and partners (we recently reported on bwin's entry as a sponsor of the NFL, for example), they also see a goldmine in e-sports.

For gambling companies, e-sports is more than just a playground - it is a market that fits perfectly into their strategies. Here, they can combine reach with enthusiasm for gaming and create an offering that strikes a chord with fans. On the other side are game developers and event organizers who are worried about the reputation of the scene, but sometimes can't resist the tempting revenue opportunities.

Source of the image: Screenshot from https://x.com/RiotMagus/status/1868476361884774487?mx=2

Central text sources: https: //x.com/RiotMagus/status/1868476361884774487?mx=2, https://de.statista.com/outlook/amo/esports/esports-wetten/weltweit

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